Tiger Airways Posts Q3 Loss Of $118.5M

[Medic Mike]

TIGER Airways Holdings' net loss for the third quarter ended 31 Dec 2013 totalled S$118.5 million - dragged down by the S$30.3 million loss from the planned divestment of Tigerair Philippines and an impairment of associates of S$58 million - versus a net profit of S$2 million in 3QFY13.

In addition, the group also recorded S$23.1 million in losses from its share of losses of associates.

Tiger recently announced that it would divest its 40 per cent stake in Tigerair Philippines to Cebu Pacific for US$7 million. The sale is expected to be completed in the quarter ending 31 March.

Revenue dropped 30.5 per cent to S$172.1 million in 3QFY14, while total expenses fell 21.3 per cent to S$180.9 million year-on-year. Both were lower due to the exclusion of Tigerair Australia which ceased to be a subsidiary from 8 July last year, following the divestment of a 60 per cent stake to Virgin Australia

 

http://www.businesstimes.com.sg/breaking-news/singapore/tiger-airways-posts-q3-loss-1185m-20140123

 

This does not surprise me. With the really cheap airfares they offer, I don't know how they make a profit.